What is Machine Learning? What is Artificial Intelligence? What is Big Data and Data Analysis?
People working in IT industry are bowled with these questions now a days. What will be the features of AI in eCommerce website in the coming years? The launch of OpenAI and ChatGPT have generated high hopes and expectations among the IT people.
Are not computers intelligent enough to do almost all the tasks perceived by human beings? Why is it necessary that machine should learn? Are not our software engineers making them to learn to do any kind of task? Are computers capable of learning?
Massive amount of data is being stored and manipulated on the servers and in the data-centres. Data is being stored to convert it into information by various types of report generating algorithms. So what is Big Data?
What is the need for further analysis of data? What is Data Analysis?
I know these questions are lingering as doubts in your mind. In this article , there is an attempt to clear these doubts in a simple way.
Artificial Intelligence (AI) based programs attempt to solve this basic problem of not having intelligence.
Artificial Intelligence(AI) is a term given to a set of programs(based on AI algorithms) that builds intelligence in the computer programs so that they evolve and learn when they are used with new set of data.So the responses of such programs change according to time. They keep becoming more accurate as more real world data is given to them. This is also called fine-tuning AI model or training the AI model. The OpenAI provides lot of APIs to do fine-tuning of AI models. These programs have capacity of modification of their rules and problem solving logic for giving responses as new knowledge or data is given to them.
Now a days, cloud based platforms are available to store data as knowledge base. Artificial Intelligence(AI) is a generic term given to such hardware or software or combination of both which demonstrates such capacity. AI based robot is the excellent example of such hardware and software. Pinecone is one such cloud based service to store vector database for machine learning and AI based models. It is also called long term memory for AI.
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Structure of Artificial Intelligence Programs |
What is a difference between a normal non AI program and AI program?
A normal non-AI program can give predetermined answers to a predetermined set of questions for which it has been designed. Any question out of the set for which it is not designed will not be answered or taken.
An AI based program will treat questions out of set as new knowledge or data and it will modify itself and it’s rules. It is called learning. These are called self learning AI models. Next time, if the same question is presented, it will give appropriate answer as per what it has learned. So AI programs are like little children. You keep giving them new information and they keep learning day by day. Their answers and responses changes day by day with new knowledge and insight in the direction of highest accuracy.
Differences between non AI and AI based programs or software
How AI in Ecommerce Website will change online retail industry?
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AI in Ecommerce Website |
AI in Ecommerce Website will make it possible to have feature like look and feel enhancement of store as individual customer wise
AI based E-commerce stores will have intelligent look and feel or User Interface(UI) design. They will be adaptive in layout and theme colour display. They will change layout and theme as per the taste of customer.
How AI in Ecommerce website will determine taste and preference of customer on individual basis? The answer lies into their product or service buying habit. If a customer consistently shops for apparel of red and blue colours, he/she is choosing simple designs of apparel with out any fancy items, the customer has preference for simplicity and taste for the above colours.
Here is a good article on this subject:
The layout will be adjusted from simple to complex as per their mouse clicking habit. If a customer is using simple widgets to perform the tasks on the store , it indicates that he/she is not tech savvy. If a customer is using complex features of the store, it indicates that he/she is tech savvy and AI based store will present advanced features of User Interface or UI to that customer.
All that is possible because AI in Ecommerce website will maintain distinct persona of each customer in their database. The distinct persona will consist of demographic information,buying habit,income level,family details,hobbies,passions,dreams and other relevant information. It will be codified as “IF THEN ELSE RULE” in the knowledge base of the store. It will be maintained per customer wise.
AI in Ecommerce website will be able to do product or service recommendations as individual customer wise
companies. It is not individualistic or personalised as per the single customer. So all customers find
same kind of recommendations delivered to them based on their selection of products in the cart.
individual customers and no two customers will be given same recommendations as their choices in the cart
may vary drastically. It is possible because AI algorithms will maintain distinct persona of each customer in their database. The distinct persona will consist of demographic information,buying habit,income level,family details,hobbies,passions,dreams and other relevant information.
AI in Ecommerce website will provide customised search for products/services as per individual customer taste
- Country from where customer is visiting the online store
- Date & Time of customer visit
- Any festivals are being celebrated in the country
- Any political situation or unrest is going in the country
AI in Ecommerce Website will help in anomaly detection and fraud detection
- New customer profiles
- Order detail of new and old customers
- Banking Details of new and old customers, credit card, debit card and Net Banking details except sensitive information
- Addresses and delivery information where geo-graphic data is also part of it.
E-commerce companies have to deal often with abusive or fraud customers who make excessive or
fraud orders with stolen credit and debit cards or banking details. It is a major source of financial loss and tarnishing of reputation for these companies.
AI algorithms can maintain a common database for fraud detection collectively pulled with member E-commerce companies or E-tailing companies. Just like in INDIA , CIBIL (TransUnion CIBIL) maintains a list of bank defaulters which is a co-operative umbrella organisation for all the banks and financial companies in INDIA.
The above database can use to detect fraud customers or users visiting the website of online store.
AI in Ecommerce website will have applications in customer support
On-line customers are made to wait long for resolving queries because of limitation of human resources in customer support or call centres. A significant amount of Operating Expenditure (OPEX) is required to provide desirable lever of customer support and service.
AI algorithms and Machine Learning algorithms are going to reduce that. Intelligent chat bots or software robots will answer phone calls and they will solve the basic problems or queries of the customers. To solve more complex queries or problems, they will escalate the issue to human customer support.
Chat bots and software robots will keep enhancing their knowledge of customer problems day by day as they will interact with more and more customers. Speech recognition and natural language processing via. deep learning will play a major role into this.
Apart from phone calls, intelligent chat bots and software robots will automatically answer phone calls,categorise emails, complain, request for information. They will also provide feedback content to various other departments of the organisation.
AI in Ecommerce website will provide features of adaptive pricing or dynamic pricing of products/services
Summary
AI in Ecommerce website is a promising technology for E-commerce or E-tailing vendors to create WOW factor in their on-line stores. Let us keep our fingers crossed.
You can also read more on this topic here:
https://designswow.com/blog-post/sentient-ai-improving-e-commerce-customer-experience/
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